Reviewing the First Session of the 107th Legislature – Part III
The first session of Nebraska’s 107th Legislature adjourned sine die May 27.
The Legislature is scheduled to convene in early fall for a special legislative session to complete the redistricting process. The second session of the 107th Legislature is scheduled to convene Jan. 5, 2022.
What follows is a review of the legislation advanced last session broken down by committee. Part I, which ran Monday, covers Agriculture; Appropriations; Banking, Commerce and Insurance; Business and Labor; Education; and Executive Board. Part II, which ran Tuesday, covers Government, Military and Veterans Affairs; Health and Human Services; Judiciary; Natural Resources; Redistricting; and Retirement Systems. Part III, which runs today, covers Revenue; Transportation and Telecommunications; and Urban Affairs.
Revenue
The Revenue Committee advanced bills this session that cut Nebraska’s top corporate income tax rate and will exempt military retirement pay and a percentage of Social Security income from state income tax.
Income Tax
Lawmakers voted 42-1 to cut the state’s top corporate income tax rate by approximately 0.5% over the next two years.
LB 432, introduced by the Revenue Committee as a placeholder bill, contains amended provisions of LB 680, introduced by Elkhorn Sen. Lou Ann Linehan, and provisions of several other bills heard by the committee this session.
Linehan’s proposal reduces the state’s top corporate income tax rate, which applies to income in excess of $100,000, from 7.81% to 7.5% for tax years beginning on or after Jan. 1, 2022, and before Jan. 1, 2023. The rate will fall to 7.25% for tax years beginning on or after Jan. 1, 2023.
The bill states the intent of the Legislature to further reduce the rate to 7% for tax years beginning on or after Jan. 1, 2024, and before Jan. 1, 2025, and to 6.84% — the current top individual income tax rate — for tax years beginning on or after that date.
The corporate income tax rate on the first $100,000 of income remains at 5.58%.
LB 432 also includes provisions of LB 597, introduced by Sen. Joni Albrecht of Thurston. They create a $2,000 refundable state income tax credit for the parent of a stillborn child if a fetal death certificate is filed and if the child had advanced to at least the 20th week of gestation and would have been a dependent of the individual claiming the credit.
Also included in the bill are provisions of LB 299, introduced by Omaha Sen. Mike McDonnell, that allow any rural or suburban fire protection district, airport authority, city, village or nonprofit corporation to provide and maintain enhanced cancer benefits for paid and volunteer firefighters, the combined total of which cannot exceed $50,000 in the firefighter’s lifetime.
Beginning with tax year 2022, an individual’s federal adjusted gross income will be reduced by the amount received by or on behalf of a firefighter for cancer benefits under the act.
Under the provisions of LB 564, also introduced by McDonnell, Nebraska educational savings plan trust accounts may be used to pay for the cost of certain apprenticeship programs.
Finally, the provisions of LB 254, introduced by Sen. Matt Williams of Gothenburg, extend the sunset date for the Beginning Farmer Tax Credit Act from Dec. 31, 2022, to Dec. 31, 2025.
The committee also advanced a bill to reduce taxation of Social Security income in Nebraska over several years with the intention of eliminating it entirely.
LB 64, sponsored by Omaha Sen. Brett Lindstrom and passed on a vote of 41-0, sets the exemption on such income, to the extent that it is included in federal adjusted gross income, at 5% in tax year 2021. The exemption will increase to 20% in 2022 and then rise 10% per year until reaching 50% in tax year 2025.
The bill states legislative intent to continue incremental reduction of the tax — reaching 100% exemption in tax year 2030 — but passage of new legislation will be required to complete the process.
Nebraskans may exclude all of their military retirement benefit pay from state income tax under another bill approved by lawmakers this session.
Under LB387, introduced by Sen. Tom Brewer of Gordon at the request of Gov. Pete Ricketts, individuals may exclude 100% of their military retirement benefit income to the extent it is included in federal adjusted gross income, beginning in tax year 2022.
The bill, passed on a 47-0 vote, also includes provisions of LB 6, introduced by Sen. Carol Blood of Bellevue, which allow a military retiree to provide a Form 1099 from either the U.S. Department of Defense or the Office of Personnel Management to claim the exemption.
Sales and Use Tax
Lawmakers voted 45-0 to pass a bill containing several sales and use tax exemptions, including one for inputs used to manufacture ethanol.
Under LB 595, introduced by Thurston Sen. Joni Albrecht, state sales and use taxes may not be imposed on the gross receipts from the sale, lease or rental of — and storage, use or other consumption in Nebraska of — all catalysts, chemicals and materials used in the process of manufacturing ethanol and the production of coproducts.
The bill also includes provisions of LB 672, introduced by Sen. Dave Murman of Glenvil, that define agricultural machinery and equipment for the purposes of an existing sales and use tax exemption.
Under LB 595, agricultural machinery and equipment are defined as tangible personal property used directly in cultivating or harvesting a crop, raising or caring for animal life, protecting the health and welfare of animal life or collecting or processing an agricultural product on a farm or ranch.
The definition now includes header trailers, head haulers, header transports and seed tender trailers.
Also included in LB 595 are provisions of LB 182, introduced by Elkhorn Sen. Lou Ann Linehan. They exempt from state sales and use taxes the gross income received from the lease or use of towers or other structures primarily used in conjunction with the furnishing of internet access service, agricultural GPS locating services or certain over-the-air radio and television broadcasting.
Finally, under provisions originally introduced by Linehan in LB 350, the proceeds of sales and use taxes imposed on the sale or lease of motorboats, personal watercraft, all-terrain vehicles and utility-type vehicles will be credited to the state Game and Parks Commission Capital Maintenance Fund until 2027 rather than 2022.
The state will turn back new sales tax revenue to cities to help them build sports complexes under a bill passed on a vote of 45-0.
Under LB 39, introduced by Omaha Sen. Brett Lindstrom, a political subdivision alone or working with a nonprofit organization can apply for state assistance to build sports complexes — facilities that are used primarily for competitive sports and contain a certain number of sports venues such as outdoor arenas or baseball, softball or multipurpose fields.
The turnback applies to state sales tax collected by new businesses located within 600 yards of the exterior boundary of a sports complex for the period of time beginning on the date the project commenced and ending four years after its completion date.
Under the bill, 30% of state sales tax revenue related to an eligible sports arena facility will be transferred to the Civic and Community Center Financing Fund.
If the sales tax revenue relates to a sports complex, 83% of those funds will be transferred to the Support the Arts Cash Fund and used to fund a competitive grant program for first class cities that have creative districts within their boundaries and a 10-year plan to bring about economic and workforce development initiatives.
The remaining 17% of those funds will be transferred to the Convention Center Support Fund and distributed to areas in metropolitan class cities with a high concentration of poverty to showcase important historical aspects of those areas or to help reduce street and gang violence.
LB 39 took effect immediately upon passage.
Residential water service in Nebraska will no longer be taxed under another bill passed by lawmakers this session.
LB 26, introduced by Sen. Justin Wayne of Omaha and passed on a vote of 41-2, exempts the gross receipts received from the sale, lease or rental of and storage, use or consumption of residential water service.
Property Tax
Certain political subdivisions must hold a joint public hearing before increasing their property tax requests under a bill passed on 42-0 vote.
Under LB 644, introduced by Sen. Ben Hansen of Blair, counties, cities, school districts and community colleges must participate in a joint public hearing and pass a resolution or ordinance before increasing their property tax request by more than an allowable growth percentage.
The bill requires counties to notify affected taxpayers of the hearing by postcard, the cost of which will be shared by the political subdivisions seeking to increase their property tax request.
The hearing must be open to public testimony, and the agenda may include only the proposed property tax request increase.
LB 644 also includes provisions of LB 189, introduced by Hastings Sen. Steve Halloran, that require a political subdivision’s governing body to make provisions in its next budget to pay a refund of real or personal property taxes. The measure also repeals a provision allowing political subdivisions up to five years to pay the refund.
Lawmakers also approved a bill intended to shift the cost of school bonds away from owners of farm and ranch land.
Under LB 2, introduced by Sen. Tom Briese of Albion and passed on a vote of 36-6, agricultural and horticultural land is valued at 50% of its actual value for purposes of school district taxes levied to pay the principal and interest on bonds approved by a vote of the people on or after the act’s operative date.
A proposal to limit increases in property taxes collected by local governments stalled on the first round of debate after a failed cloture motion.
Under LB 408, as introduced by Briese, a political subdivision’s property tax request — the amount of property taxes requested to be raised through its levy — could not exceed the prior year’s request by more than 3%.
A political subdivision could exceed the limit by an amount approved by a majority of registered voters in a primary, general or special election.
Under a pending Revenue Committee amendment, a political subdivison’s property tax request for any year could not exceed the previous year’s request multiplied by 103%. The limit would apply to property tax requests set in 2022 through 2027.
The amendment also would allow a political subdivision to exceed the 3% limit for no more than two consecutive years with a majority vote of its governing body. The political subdivision’s property tax request would be reduced in subsequent years so that the increase would not exceed 9% over a three-year period.
The limit would not apply to the portion of a political subdivision’s property tax request that will be derived from its real growth value, or the increase in real property valuation due to improvements — such as new construction and additions to existing buildings — and the annexation of property.
After eight hours of debate on general file, Briese filed a motion to invoke cloture, which ceases debate and forces a vote on the bill and any pending amendments. The motion failed on a vote of 29-8. Thirty-three votes were needed. LB 408 was not scheduled for further debate this session.
A bill that would provide additional state aid to school districts that rely heavily on property taxes failed to advance from the first round of debate.
Under LB 454, as introduced by Henderson Sen. Curt Friesen, a school district would be eligible for a property tax stabilization payment if its property tax requirement — defined as the difference between the district’s needs and the amount of state aid it receives — exceeds 70% of its needs for the school year.
A Revenue Committee amendment replaced the bill. Under the amendment, a school district’s property tax requirement would have to exceed a smaller percentage of its needs each year in order for the district to qualify for a stabilization payment, from 70% in school fiscal year 2021-22 to 55% for school fiscal year 2024-25 and after.
Unlike the original bill, the amendment would not reduce the valuation of agricultural and horticultural land for the purposes of school district taxation.
LB454 failed to advance to select file on a vote of 23-12. Twenty-five votes were needed.
Tax Incentives
The state will provide matching funds for the development of industrial rail access business parks under a bill passed on a 49-0 vote.
Under LB 40, introduced by Sen. Mike Groene of North Platte, a nonprofit economic development corporation may apply to the director of the state Department of Economic Development for up to $30 million in matching funds to cover a project’s development costs. The director could approve up to $50 million in matching funds under the act.
Matching funds could be used for site acquisition and preparation, utility extensions and rail spur construction for the development of a new industrial rail access business park, including expenses incurred to help an initial tenant in the manufacturing, processing, distribution or transloading trades.
Qualifying projects must be located in a county with a population of fewer than 100,000 inhabitants.
Upon legislative appropriation of funds, the state will provide $2 of matching funds for each dollar invested up to $2.5 million. For a larger investment, the state will provide $5 in matching funds for each dollar invested.
Businesses that invest in urban areas with high poverty and unemployment rates may qualify for tax incentives under another bill passed by lawmakers this session.
Under LB 544, introduced by Omaha Sen. Justin Wayne and passed on a vote of 49-0, taxpayers may apply to the director of the state Department of Economic Development for tax credits based on their level of investment and the number of new employees they hire.
To qualify, a business must be located in a primary or metropolitan class city and in an economic redevelopment area in which the average rate of unemployment is at least 150% of the state average and the average poverty rate is 20% or more for the area’s federal census tract.
Taxpayers may use the credits to offset income, sales and use or real property taxes or to reduce income tax withholding. No taxpayer may earn a credit that exceeds $50,000.
The director may not approve further applications once the expected incentives from approved projects total $8 million, and no new applications may be filed after Dec. 31, 2031.
Senators also passed a bill intended to modernize the state’s small business tax credit.
Under the Nebraska Advantage Microenterprise Tax Credit Act, a business with five or fewer full-time employees can apply to receive a refundable tax credit designed to help decrease the cost of startup and expansion.
The program, which offers a tax credit to approved microbusiness taxpayers for new investment or employment equal to 20% of the investment amount — up to a maximum of $10,000 — had been set to expire in 2022. Total credits approved under the program are limited to $2 million annually.
LB 366, introduced by Sen. Tom Briese of Albion and passed on a 44-1 vote, extends the program expiration date through 2032. It also raises the maximum lifetime tax credits claimed by any individual from $10,000 to $20,000.
Finally, the bill strengthens reporting requirements and allows certain family members of a person who has received the maximum credit also to participate in the program — as long as ownership is not shared and the businesses are completely separate.
The changes made by LB 366 apply only to applications made after the bill’s operative date.
Lawmakers passed two measures that update the provisions of a major tax incentive program passed in 2020.
LB 18, sponsored by Seward Sen. Mark Kolterman and passed on a vote of 34-10, makes three changes to the ImagiNE Nebraska Act, a business tax incentive program that replaced the Nebraska Advantage Act.
Currently, the act requires that all qualifying new full-time jobs be filled by individuals who reside in Nebraska. The bill removes this provision and instead requires that an individual in a qualifying job be employed in the state and be subject to Nebraska income tax on compensation received.
LB 18 also changes the definition of two qualifying business activities under the ImagiNE Nebraska Act to clarify terms and conform with a recent U.S. Supreme Court decision.
Under LB 84, sponsored by Sen. Bruce Bostelman of Brainard and passed on a 47-0 vote, a renewable energy firm that uses nuclear energy to produce electricity is eligible for tax incentives under the act.
Lawmakers also approved a measure that changes the way in which passthrough entities claim a refundable income tax credit under the Property Tax Incentive Act.
The act, passed last year as part of LB 1107, requires passthrough entities, trusts and estates to allocate the credit — which is based on school property taxes paid — in the same proportion that income is distributed to shareholders, partners, members or beneficiaries.
LB 181, sponsored by Elkhorn Sen. Lou Ann Linehan, allows passthrough entities, trusts and estates to distribute the credit in the current manner for taxable years beginning or deemed to begin before Jan. 1.
For taxable years beginning or deemed to begin on or after that date, the credit will be claimed at the entity level.
The bill passed on a 46-0 vote and took effect immediately.
Other Measures
Voters could amend Nebraska’s constitution to replace property, income, sales, inheritance and estate taxes with a state consumption tax under a proposal that failed to advance from the second round of debate.
If passed by the Legislature, LR 11CA, sponsored by Bayard Sen. Steve Erdman, would place the question on the November 2022 general election ballot.
The amendment would prohibit the state and its political subdivisions from imposing a tax on property, income, inheritances, estates and the retail sale of services and most goods effective Jan. 1, 2024.
It would require the Legislature to enact a consumption tax that applies to the purchase of services and new goods, except for fuel, beginning on that date. The Legislature also could authorize political subdivisions to enact their own consumption taxes.
LR 11CA failed to advance to select file on a vote of 23-19, two votes short of the number required.
A bill that would create a tax credit scholarship program for private school students stalled on general file after a failed cloture motion.
LB 364, introduced by Sen. Lou Ann Linehan of Elkhorn, would allow individuals, passthrough entities, estates, trusts and corporations to claim a nonrefundable income tax credit of up to 50% of their state income tax liability on contributions they make to nonprofit organizations that grant scholarships to students to attend private school.
Only Nebraska residents would be eligible for the scholarships, which could be used to pay tuition and fees at a qualifying privately operated elementary or secondary school in Nebraska.
Students would be eligible for the scholarships if, among other requirements, they are a dependent member of a household with a gross income that does not exceed the eligibility guidelines for reduced-price meals under the National School Lunch Program.
As introduced, LB 364 would allow the state Department of Revenue to grant $10 million in credits in 2022. After that, if at least 90% of the credits in any given year are claimed, the annual limit would increase by 25%.
A pending Revenue Committee amendment instead would limit the total amount of credits available each year to $5 million.
The amendment also includes the amended provisions of LB 531, introduced by Albion Sen. Tom Briese.
Under his proposal, taxpayers who make a qualifying financial contribution to certain child care and early childhood education programs in Nebraska could apply for a nonrefundable income tax credit equal to a portion of the contribution. Contributions would have to promote or enhance quality child care and early childhood education programs.
An eligible child care or early childhood education program would have to be enrolled in the quality rating and improvement system developed under the Step Up to Quality Child Care Act and meet other requirements.
Individuals, estates, trusts and corporations could claim the credit, which could not exceed $25,000 per taxpayer in any single year. Up to $5 million in credits would be available each year.
After eight hours of first-round debate, Linehan filed a motion to invoke cloture, which failed on a vote of 29-18.
The state highway commission could issue up to $400 million in bonds over the next six years to speed completion of Nebraska’s expressway system under a bill discussed on general file this session.
LB 542, as introduced by Sen. Lynne Walz of Fremont, would authorize the commission, upon recommendation of the state Department of Transportation, to issue up to $400 million in bonds to accelerate completion of highway construction projects under the Build Nebraska Act. Annual debt service could not exceed $30 million.
Lincoln Sen. Mike Hilgers, speaker of the Legislature, said he would “park” LB 542 until next session and retain its priority status. He said lawmakers should wait to consider the proposal in light of a potential federal infrastructure bill that could include significant roads funding for states.
Lawmakers moved to the next item on the agenda without voting on LB 542 or the amendment.
Finally, the committee advanced a proposal that would cut state inheritance tax rates while increasing the amount of property value that is exempt from the tax, but it was not scheduled for first-round debate.
LB 310, sponsored by Sen. Robert Clements of Elmwood, would cut rates approximately in half on each of the three classes of beneficiaries subject to the tax over three years while allowing exemptions to increase.
Transportation and Telecommunications
Of the transportation and telecommunications issues considered this session, senators prioritized rural broadband development, lower administrative fees and expanded license plate options.
Rural Broadband
Lawmakers passed a bill to increase broadband availability throughout the state.
Under LB 388, introduced by Henderson Sen. Curt Friesen at the request of Gov. Pete Ricketts, the Public Service Commission will administer grants to providers, cooperatives and political subdivisions to fund qualifying broadband development projects.
The bill appropriates $20 million in fiscal years 2021-22 and 2022-23 to the commission to fund the grants, with legislative intent that the same level of funding continue annually. Priority will be given to grants to unserved areas that previously have not been targeted for such a project, unserved areas that are receiving federal support for construction that will not be completed within 24 months and underserved areas that have developed a broadband and digital inclusion plan.
Eligibility is restricted to projects providing broadband internet service scalable to 100 Mbps for downloading and 100 Mbps for uploading, or greater. Each project must have a completion deadline of 18 months from the date the grant is awarded and be eligible for one extension of six months, to be approved by the PSC.
Political subdivisions must form a public-private partnership with a service provider to qualify for funding under LB 388 and commit matching funds equal to 50% of the total development costs.
The bill requires all grant recipients to conduct randomized speed tests and submit the results to the PSC. If speeds fail to meet the bill’s requirements, the provider will be required to repay the grant.
The commission will approve grants for all qualified applicants while funding remains available, with no award to exceed $5 million. An applicant must provide broadband service for the entirety of the funding agreement. A grant recipient that fails to provide service at required speeds will have reasonable time to address the speed deficiency before funding is withdrawn.
LB 388 passed on a 49-0 vote.
The Public Service Commission adopted rules in 2018 to withhold Nebraska Universal Service Fund support from telecommunications carriers that do not offer broadband services and instead redirect that funding to eligible carriers who could provide broadband in the same exchange area through a reverse auction process.
LB 338, sponsored by Brainard Sen. Bruce Bostelman, authorizes a second method to redirect funds, known as a rural-based plan.
To qualify for consideration by the PSC, a rural-based plan must include an eligible telecommunications company. Plans will be judged on a company’s history and service capability in the area, as well as local support, partnerships with local public power and wireless internet service providers and cooperation by the incumbent local exchange carrier that has lost support from the commission.
The bill requires any recipient of ongoing high-cost financial support from the state universal service fund to submit to broadband service speed tests by the PSC. Any universal service funds distributed for new broadband infrastructure construction will be directed to projects that provide service scalable to 100 Mbps or greater of upload speed.
Additionally, any political subdivision that receives federal funding for broadband service enhancement will be required to provide service scalable to 100 Mbps or greater for both upload and download speed.
LB 338 passed on a 46-0 vote.
Licensing and Fees
Creighton Sen. Tim Gragert sponsored LB 78, passed 46-0, to require an applicant for a Gold Star Family, Ex-Prisoner of War, Disabled American Veteran or Purple Heart/Combat Wounded license plate to register first with the state Department of Veterans’ Affairs.
The state Department of Motor Vehicles will use the registry information to verify an individual’s eligibility.
Senators also approved the creation of two new specialty license plates this session.
Under LB 317, sponsored by Omaha Sen. John Cavanaugh, Nebraska History license plates will be available in alphanumeric or personalized versions beginning Jan. 1, 2023. The plate will be designed in consultation with History Nebraska — formally known as the Nebraska Historical Society — and reflect the importance of preserving the state’s shared history.
The fee for the alphanumeric plate is $5, credited to the Support Nebraska History Cash Fund. Personalized plates will cost $40, with $10 credited to the state Department of Motor Vehicles Cash Fund and $30 credited to the Support Nebraska History Cash Fund.
The bill passed on a 39-0 vote.
LB 166, sponsored by Lincoln Sen. Suzanne Geist and passed 41-0, authorizes Josh the Otter-Be Safe Around Water license plates, available as of Jan. 1, 2022.
The fee for the alphanumeric plate is $5, credited to the Josh the Otter-Be Safe Around Water Cash Fund. Personalized plates will cost $40, with $10 credited to the state Department of Motor Vehicles Cash Fund and $30 credited to the Josh the Otter-Be Safe Around Water Cash Fund.
The bill requires the Game and Parks Commission to create a program to award grants from the cash fund to nonprofit organizations dedicated to educating children about water safety.
A bill to increase landline and wireless fees in certain counties failed to advance from general file this session.
Currently, 92 Nebraska counties can collect up to $1 per month, per landline telephone number, to pay for 911 services. Wireless phone carriers can charge up to 70 cents per phone number also to fund 911.
Both fees are capped at 50 cents per phone line in counties with a city of the metropolitan class. Douglas County is the only county where this exemption applies.
Venango Sen. Dan Hughes sponsored LB 215, which would remove that exemption and effectively allow an increase of both fees in Douglas County. Senators voted 20-10 on advancement of the bill to select file, five votes short of the number required.
Committee members considered a proposal this year to provide a motor vehicle tax exemption to disabled veterans.
Under LB 508, sponsored by Bostelman, a veteran with a 100% service-connected disability who was honorably discharged and is drawing Social Security would be eligible for the motor vehicle tax exemption for one vehicle owned and used for their personal transportation.
A veteran’s surviving spouse who receives dependency and indemnity compensation also would be eligible for the exemption. The bill remains in committee.
Other Measures
Nebraska law enforcement will be required to make timely abandoned vehicle reports under a bill passed by lawmakers this session.
When an abandoned vehicle is towed, the towing company must notify any lienholder on the title, as well as the owner, within 15 business days. LB 616, sponsored by Hughes, requires the law enforcement agency with jurisdiction to follow the notification requirements.
The bill, passed 45-0, also raises the immediate vesting level of an abandoned vehicle from $250 to $500.
Another measure considered remains in committee.
Current state law requires all motorcycle or moped riders to wear a protective helmet. LB 581, introduced by Blair Sen. Ben Hansen, instead would give riders 21 and older the option not to wear a helmet, but would require eye protection while riding and completion of a certified motorcycle safety course.
Urban Affairs
Lawmakers established inland port authorities, implemented provisions of an economic development-related constitutional amendment, updated annexation law and created a registry for home inspectors.
LB 156, introduced by Omaha Sen. Justin Wayne, allows up to five inland port authorities to be established in Nebraska. An inland port authority may be established in a metropolitan, primary or first class city or a county with a population of greater than 20,000.
A qualifying city and one or more counties that contain a qualifying city — or in which the extra-territorial zoning jurisdiction of such a city is located — also may form a joint inland port authority.
To be eligible, an inland port site must be at least 300 acres in area and meet two of the following criteria of being within:
• 1 mile of a navigable river or waterway;
• 1 mile of a major rail line;
• 2 miles of a major airport; or
• 2 miles of any federal interstate or any four-lane divided highway.
An inland port authority is authorized to engage in marketing activities, issue and sell revenue bonds and acquire rights-of-way and property. All authorities established under the bill will be administered by an appointed governing board.
Lawmakers passed LB 156 on a 47-0 vote.
Wayne also introduced LB 25, which implemented the provisions of a constitutional amendment approved by voters in 2020. The bill, passed 48-0, extends the maximum repayment period for tax-increment financing from 15 years to 20 if more than one half of the land in a project is designated as extremely blighted.
Nebraska home inspectors will be required to register with the state beginning Jan. 1, 2023, under a bill introduced by Omaha Sen. Steve Lathrop. LB423 requires inspectors to register with the Nebraska secretary of state, pay a fee and provide a certificate of general liability insurance of not less than $250,000. The bill establishes a maximum registration fee of $300 and allows an inspector to list any national home inspection certification he or she holds.
Senators passed LB 423 on a vote of 41-2.
LB 9, introduced by Bellevue Sen. Carol Blood, deems land, lots, tracts, streets and highways as contiguous to a first class city for annexation purposes even if areas owned by the federal government are located between potentially annexed land and a city’s corporate limits.
Any changes to electrical service require approval of the electric utility currently serving the potentially annexed area. LB 9 also allows for a special valuation of agricultural or horticultural land within the boundaries of a city or village if the land is subject to air installation compatible-use zone regulations or is within a flood plain.
The bill, which passed 46-0 and took effect immediately, applies only to first class cities located in counties with at least three first class cities.
LB 131, introduced by Sen. Megan Hunt of Omaha, adds “or as otherwise provided by law” to the list of reasons a municipality may waive reading an ordinance three times before its adoption.
The measure, passed 40-7, includes provisions of seven other bills:
• LB 99, introduced by Fremont Sen. Lynne Walz, which exempts areas designated as extremely blighted from the maximum percentage of a city or village that may be designated blighted under the Community Development Law;
• LB 161, introduced by the Urban Affairs Committee, which makes several technical changes to the Building Construction Act;
• LB 162, also introduced by the committee, which establishes uniform procedures to detach territory from a municipality’s corporate limits;
• LB 218, introduced by Wayne, which adopts the 2018 Uniform Plumbing Code as the state’s default plumbing code;
• LB 549, also introduced by Wayne, which allows municipalities that operate a natural gas plant or natural gas system to apply to the state for emergency grant funding to cover up to 80% of extraordinary costs associated with an extreme weather event and provides a one-time, $4 million general fund transfer to fund the grants;
• LB 556, introduced by Lincoln Sen. Matt Hansen, which clarifies that municipalities may add requirements to a redevelopment contract to comply with their comprehensive redevelopment plan, affordable housing action plan or other goals established by the municipality; and
• LB 647, introduced by Norfolk Sen. Michael Flood, which allows first class cities to increase their bonding threshold from $2 million to $5 million when constructing or buying a public building without a vote of the people.
Sanitary and improvement districts can build off-street parking facilities under LB 81, introduced by Sen. Robert Hilkemann of Omaha. The bill, passed 40-0, enables SIDs to acquire, purchase, own, erect, construct, equip, operate or maintain off-street parking facilities.
This review first appeared in The Unicameral Update, a daily news source produced by the Clerk of the Legislature’s Unicameral Information Office that covers legislative activity, including floor action and committee hearings. For additional coverage, visit update.legislature.ne.gov.
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